Since the launch of the DMSP Special Sensor Microwave/Imager (SSM/I), several algorithms have been developed to retrieve overland parameters. These include the present operational algorithms resulting from the Navy calibration/validation effort such as land surface type (Neale et al. 1990), land surface temperature (McFarland et al. 1990), surface moisture (McFarland and Neale, 1991) and snow parameters (McFarland and Neale, 1991). In addition, other work has been done including the classification of snow cover and precipitation using the SSM/I (Grody, 1991). Due to the empirical nature of most of the above mentioned algorithms, further research is warranted and improvements can probably be obtained through a combination of radiative transfer modelling to study the physical processes governing the microwave emissions at the SSM/I frequencies, and the incorporation of additional ground truth data and special cases into the regression data sets. We have proposed specifically to improve the retrieval of surface moisture and snow parameters using the WetNet SSM/I data sets along with ground truth information namely climatic variables from the NOAA cooperative network of weather stations as well as imagery from other satellite sensors such as the AVHRR and Thematic Mapper. In the case of surface moisture retrievals the characterization of vegetation density is of primary concern. The higher spatial resolution satellite imagery collected at concurrent periods will be used to characterize vegetation types and amounts which, along with radiative transfer modelling should lead to more physically based retrievals. Snow parameter retrieval algorithm improvement will initially concentrate on the classification of snowpacks (dry snow, wet snow, refrozen snow) and later on specific products such as snow water equivalent. Significant accomplishments in the past year are presented.